Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this summary, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this summary. (a joint stock company with limited liability established in the People’s Republic of China) (H Share Stock Code: 00874) SUMMARY OF THE 2026 INTERIM REPORT 1. IMPORTANT NOTICE 1.1 This summary is extracted from the full text of the 2026 interim report of the Company for the six months ended 30 June 2026. Investors who wish to obtain further details are advised to read in detail the full text of the 2026 interim report which will be published on, among others, the website of SSE (http://www.sse.com.cn) or other websites designated by CSRC, and on the website of HKEX (https://www.hkexnews.hk/index_c.htm). 1.2 The Board, the Directors and the members of senior management of the Company collectively and individually accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this summary and confirm that there are no false information, misleading statements, or material omissions in this summary. 1.3 As at the date of this announcement, the Board comprises Mr. Chen Jiehui, Mr. Yuan Cheng, Mr. Cheng Hongjin, Mr. Tang Heping, Ms. Liu Lan and Mr. Liu Hong as executive Directors, Mr. Huang Jiyuan as non-executive Director, and Mr. Wong Lung Tak Patrick, Ms. Sun Baoqing, Mr. Wu Xiangneng and Mr. Yang Yinbao as independent non-executive Directors. All Directors attended the fourth meeting of the tenth session of the Board, at which Mr. Cheng Hongjin, Mr. Wong Lung Tak Patrick and Ms. Sun Baoqing attended the meeting by telephone. Mr. Tang Heping and Mr. Huang Jiyuan were unable to attend this meeting of the Board in person and each authorised Mr. Chen Jiehui and Mr. Yuan Cheng respectively to attend and exercise their voting rights on their behalf. 1.4 Profit distribution plan or plan of conversion of capital reserves into share capital during the Reporting Period as considered by the Board Following consideration and approval by the Board, the Company proposes to distribute profits based on the total share capital registered on the record date of the implementation of equity distribution, and pay a cash dividend of RMB0.30 per share (inclusive of tax) to all shareholders for every share. As of 30 June 2026, the total share capital of the Company is 1,625,790,949 shares, based on which the total proposed cash dividend is calculated to be RMB487,737,284.70 (inclusive of tax). No bonus shares will be issued, and no capital reserve will be converted into share capital this time.
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2 1.5 The financial reports of the Group and the Company for the Reporting Period have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited. 1.6 All information required to be contained in the summary of the 2026 interim report of the Company pursuant to paragraph 46 of Appendix D2 to the Listing Rules of HKEX shall be published on the website of HKEX (https://www.hkexnews.hk/index_c.htm). 1.7 This summary is prepared in both English and Chinese. In the event of discrepancy in interpretation, the Chinese version shall prevail. 2. DEFINITIONS In this summary, unless the context otherwise requires, the following terms have the meanings as follows: Company/the Company/ GYBYS Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited PRC or China the People’s Republic of China Reporting Period 1 January 2026 to 30 June 2026 Group the Company and its subsidiaries Board the board of directors of the Company Director(s) director(s) of the Company Audit Committee the audit committee under the Board CSRC China Securities Regulatory Commission SSE The Shanghai Stock Exchange HKEX The Stock Exchange of Hong Kong Limited Listing Rules of HKEX the Rules Governing the Listing of Securities on the HKEX Model Code the Model Code for Securities Transactions by Directors of Listed Issuers under the Listing Rules of HKEX GPHL Guangzhou Pharmaceutical Holdings Limited (ʮ ̡), the controlling Shareholder of the Company
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3 Zhong Yi Guangzhou Baiyunshan Zhong Yi Pharmaceutical Company Limited (ʮ̡), the subsidiary of the Company WLJ Great Health Guangzhou WLJ Great Health Industry Co., Ltd. (ᄿψˮϼΛɽੰ ʮ̡), the subsidiary of the Company GP Corp. Guangzhou Pharmaceuticals Company Limited (ʮ ̡), the subsidiary of the Company Cai Zhi Lin Guangzhou Cai Zhi Lin Pharmaceutical Co., Ltd. (ᖹุϞ ʮ̡), the subsidiary of the Company Guangyao Baiyunshan Hong Kong Company Guangzhou Pharmaceutical Baiyunshan Hong Kong Company Limited (ʮ̡), the subsidiary of the Company GZ Chan Tou Guangzhou Industrial Investment and Capital Operation Holding Group Ltd. (ʮ̡) GZ Chengfa Guangzhou Chengfa Guangji No.1 Equity Investment Partnership (Limited Partnership)Υ ྫ formerly known as Guangzhou China Life Urban Development Industry Investment Enterprise (Limited Partnership) (̹ Υྫ)) Guangxi Ying Kang Guangxi Baiyunshan Yingkang Pharmaceutical Company Limited (ᄿ ʮ̡), the subsidiary of the Company Jing Xiu Tang Guangzhou Baiyunshan Jing Xiu Tang Pharmaceutical Co., Ltd. ( ᄿ ʮ̡), the subsidiary of the Company Baiyunshan General Factory Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd. Baiyunshan Pharmaceutical General Factory (ٰ ʮ̡ͣථʆႡᖹᐼᅀ), the branch of the Company Guang Hua Guangzhou Baiyunshan Guang Hua Pharmaceutical Co., Ltd., ( ᄿψ ʮ̡), the subsidiary of the Company Tian Xin Guangzhou Baiyunshan Tian Xin Pharmaceutical Co., Ltd. (ᄿψͣථ ʮ̡), the subsidiary of the Company Digital Technology Company Guangzhou Pharmaceutical Digital Intelligence Technology Co., Ltd. (ʮ̡), the subsidiary of the Company Industrial Securities Asset Management Industrial Securities Asset Management Co., Ltd.(ጳᗇᗇՎ༟ପ၍ଣ ʮ̡)
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4 3. COMPANY PROFILE 3.1 Company profile Stock abbreviation: BAIYUNSHAN Stock code: 600332 (A Share) Stock exchange: SSE Stock abbreviation: BAIYUNSHAN PH Stock code: 00874 (H Share) Stock exchange: HKEX Secretary to the Board Representative of securities affairs Name Huang Xuezhen / Telephone (8620) 6628 1218 (8620) 6628 1216 Fax (8620) 6628 1229 Address No. 45 Sha Mian North Street, Liwan District, Guangzhou City, Guangdong Province, the PRC E-mail huangxz@gybys.com.cn sec@gybys.com.cn Internet website http://www.gybys.com.cn Principal place of business in Hong Kong Room 2005, 20th Floor, Tower Two Lippo Centre, 89 Queensway, Hong Kong
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5 3.2 Principal financial data and financial indicators Principal financial data The Reporting Period The corresponding period of 2025 Changes as compared with the corresponding period of 2025 (Unaudited) (Unaudited) (%) Operating revenue (RMB) 42,090,954,813.30 41,834,546,113.81 0.61 Total profit (RMB) 2,601,697,280.02 3,090,416,329.11 (15.81) Net profit attributable to the shareholders of the Company (RMB) 2,095,917,671.48 2,516,140,986.67 (16.70) Net profit attributable to the shareholders of the Company after deducting non- recurring items (RMB) 1,938,660,756.00 2,205,589,253.72 (12.10) Net cash flow from operating activities (RMB) (269,950,747.12) (3,397,136,268.03) 92.05 Net cash flow from operating activities per share (RMB) (0.17) (2.09) 92.05 Principal financial data As at 30 June 2026 As at 31 December 2025 Changes as compared with 31 December 2025 (Unaudited) (Audited) (%) Net assets attributable to the shareholders of the Company (RMB) 39,132,046,564.44 37,788,048,346.79 3.56 Total assets (RMB) 87,822,068,630.01 84,511,140,010.26 3.92 Equity attributable to the shareholders of the Company per share (RMB/share) 24.07 23.24 3.56
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6 Principal financial indicators The Reporting Period The corresponding period of 2025 Changes as compared with the corresponding period of 2025 (Unaudited) (Unaudited) (%) Basic earnings per share (RMB/share) 1.289 1.548 (16.70) Diluted earnings per share (RMB/share) 1.289 1.548 (16.70) Basic earnings per share after deducting non-recurring items (RMB/share) 1.192 1.357 (12.10) Ratio of weighted average return on net assets (%) 5.40 6.77 A decrease of 1.37 percentage points Ratio of weighted average return on net assets after deducting non-recurring items (%) 4.99 5.93 A decrease of 0.94 percentage point Note: The above financial data and indicators are computed based on consolidated financial statements. DESCRIPTION OF PRINCIPAL FINANCIAL DATA AND FINANCIAL INDICATORS OF THE COMPANY ✔ Applicable ½ Not applicable Net cash flow from operating activities changed year-on-year due to: During the Reporting Period, the Company’s subsidiaries strengthened cash management, resulting in a year-on-year increase in payment collections.
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7 3.3 The top ten shareholders of the Company Total number of shareholders as at the end of the Reporting Period 110,167 Total number of preferred shareholders whose voting rights were restored as at the end of the Reporting Period 0 The top ten shareholders of the Company Shareholders Nature of shareholders Approximate percentage of the total issued share capital Number of shares held as at the end of the Reporting Period Number of shares subject to selling restrictions held Number of shares subject to pledge, mark or lock-up % (Share) (Share) (Share) GPHL State-owned legal person 45.04 732,305,103 0 0 HKSCC Nominees Limited Overseas legal person 13.52 219,773,092 0 0 GZ Chengfa Others 4.16 67,576,183 0 0 GZ Chan Tou State-owned legal person 1.04 16,831,252 0 0 Hong Kong Securities Clearing Company Limited Overseas legal person 0.44 7,139,363 0 0 China Construction Bank Corporation Limited – Huitianfu CSI Traditional Chinese Medicine Exchange Traded Open-end Index Securities Investment Fund Others 0.31 5,000,591 0 0 Bank of China Limited – Bosera CSI Dividend Low Volatility 100 Exchange Traded Open-end Index Securities Investment Fund Others 0.29 4,727,100 0 0 Gong Youfang Domestic Natural Person 0.26 4,178,000 0 0 Bank of Communications Co., Ltd. – Invesco Great Wall CSI Dividend Low Volatility 100 Exchange Traded Open-end Index Securities Investment Fund Others 0.23 3,757,300 0 0 Zhao Xuguang Domestic Natural Person 0.23 3,698,995 0 0
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8 Explanation on the connection or persons acting in concert among the above shareholders (1) According to the information provided by HKSCC Nominees Limited, the H shares held by it were held on behalf of several clients. (2) The Company was not aware of any connection among the above top ten shareholders, or whether they were persons acting in concert as provided in the “Measures for the Administration of Acquisition of Listed Companies”. Explanation on Preferred shareholders with their voting rights restored and the number of shares they hold Not Applicable 3.4 Table of total numbers of shareholders of preferred shares and top ten shareholders of preferred shares as at the end of the Reporting Period ½ Applicable ✔ Not applicable 3.5 Information on change in controlling shareholders or beneficial owners ½ Applicable ✔ Not applicable 3.6 Information of bonds remaining on the approval date of the interim report ½ Applicable ✔ Not applicable
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9 4. MAJOR EVENTS 4.1 Management discussion and analysis In the first half of 2026, the Group remained firmly focused on its strategic positioning in biopharmaceuticals and healthcare. Building on its existing industrial strengths and competitive advantages, the Group continued to tap into internal resources and assets, while coordinating and strengthening all key links across the full chain of production and operations, thereby ensuring business growth. During the Reporting Period, the Group achieved operating revenue of RMB42,090,954,813.30, representing a year-on-year increase of 0.61%; total profit of RMB2,601,697,280.02, representing a year-on-year decrease of 15.81%; and net profit attributable to shareholders of the Company of RMB2,095,917,671.48, representing a year-on-year decrease of 16.70%. During the Reporting Period, major activities promoted by the Group include: (I) Focusing on the full-chain core business to consolidate the foundation of operations. First, the Group leveraged its centralized procurement platform for Chinese medicinal materials, raw materials, auxiliary materials and packaging materials within the Group, vigorously advanced reforms in the procurement model, and achieved initial results in cost reduction and efficiency enhancement. At the same time, the Group strengthened full- lifecycle management of suppliers, rigorously controlled access and quality checkpoints at the source, and effectively stabilized the raw material supply chain. Second, the Group implemented the “Excellent Product Plan” and promoted a differentiated precision marketing strategy of “one strategy for one product” to strengthen existing flagship products and explore new products with great potential. During the Reporting Period, sales revenues of An Gong Niu Huang Pills, Amoxicillin series, Cefixime series, Xiao Er Qi Xing Cha, Kun Xian Capsules and other products achieved relatively rapid year-on-year growth; the Group actively advanced its applications for national and local volume-based procurement as well as its planning for inclusion in the essential medicines list. During the Reporting Period, 24 products including Cefuroxime Sodium for Injection, Clindamycin Phosphate Injection, Memantine Hydrochloride Tablets, Amoxicillin Granules and others were successfully selected in the continuation rounds of the first to eighth batches of the national volume-based procurement. After the Reporting Period, 19 specifications of products including Xiao Chai Hu Granules were newly added to the National Essential Medicines List (2026 Edition). The Group continued to strengthen brand building and established its own brand matrix to amplify the market influence of local brands. In parallel, the Group consolidated its investment promotion and business development efforts, opening cooperation channels for hundreds of quality products at the investment promotion conference and continuously expanding the sales network.
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10 Third, the Group expanded into the natural beverage sector, shifting from a flagship- product-focused approach to multi-category systematic competition, which enabled the Group to create a full-category plant-based beverage product matrix adapted to channel upgrades. During the Reporting Period, the Group launched new products including beer- flavored sparkling plant-based beverages and plant-based protein drinks, and upgraded Li Xiao Ji ( টʃΛ) fruit juice drink to Litchi Juice of the King (ট͒). The Group continuously enhanced its brand communication momentum by integrating key promotional periods, sponsoring popular variety shows, signing well-known brand ambassadors and other measures to continuously capture market attention and maintain brand visibility. During the World Cup, the Group signed a football star as its global brand ambassador, successfully creating a star marketing campaign that broke through conventional boundaries and delivered outstanding communication results. Fourth, leveraging its advantages as a leading pharmaceutical distributor, the Group continued to optimize its product mix and integrate online and offline channel resources, achieving steady growth in wholesale business scale. For its retail business, the Group leveraged diversified channels including dual-channel pharmacies, cross- border e-commerce and instant retail to accelerate market expansion, while deepening wholesale-retail synergy to improve store profitability; the Group also accelerated its deployment in emerging businesses such as radiopharmaceuticals to promote development in specialized niche segments. During the Reporting Period, GP Corp., the subsidiary of the Company, became the first distributor, wholesaler and logistics provider for imported radiopharmaceuticals in China, and a subsidiary of GP Corp. obtained the first Radiopharmaceutical Business License in Heilongjiang Province. (II) Focusing on innovation-driven empowerment and smart manufacturing to solidify the foundation and upgrade quality. 1. The Group made coordinated arrangements for various research and innovation platforms in traditional Chinese medicine, chemical drugs, biologics, premium nutrition and synthetic biology; deepened collaborative innovation among industry, academia and research; accelerated the translation and commercialization of cutting- edge basic research; and smoothed the pathway for industrialization of scientific research outcomes. During the Reporting Period, the Group partnered with top domestic universities and research institutes in the biopharmaceutical field to jointly advance the establishment of enterprise-university collaborative research institutes. 2. The Group accelerated its R&D efforts and strategically built its innovation pipeline. As of the end of the Reporting Period, the Group focused on five priority therapeutic areas – malignant tumors, chronic disease management, major respiratory diseases, immune system disorders and men’s health – and had over 160 R&D projects in the pipeline, including 11 Class 1 innovative drugs, of which 2 were in Phase I clinical trials, 4 in Phase II clinical trials and 1 in the stage of marketing authorization application. The Group also continued to build its BD project reserve, establishing a pipeline library of over 100 BD projects, with preliminary assessments completed and
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11 follow-up negotiations underway for over 60 prospective projects, of which nearly 10 innovative drug projects had entered the due diligence and negotiation phases. The R&D progress of the Group’s Class 1 innovative drugs is set forth below. 3. The Group accelerated its innovation drive and achieved outstanding results in scientific and technological innovation. During the Reporting Period, the Group received 2 awards from national-level associations and societies and obtained 2 new national-level qualifications, of which Zhong Yi was recognized as a candidate for the National Intellectual Property Demonstration Enterprise, and Guangxi Ying Kang was recognized as a candidate for the National Intellectual Property Advantage Enterprise. The Group added 2 new provincial-level research platforms, of which Cai Zhi Lin was recognized as Guangdong Provincial Engineering Technology Research Center (focusing on intelligent manufacturing of Chinese herbal pieces), and WLJ Great Health was recognized as Guangdong Provincial Engineering Research Center (focusing on environmental health risks and intervention through medicine-food homology). The Group received 35 new patent grants, with the core technology of Jing Xiu Tang’s Kangshou Pills obtaining an invention patent in Japan. The Group obtained 4 new drug approvals, 1 new clinical trial approval and 2 product varieties that passed the generic drug consistency evaluation.
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12 4. The Group strengthened institutional and mechanism safeguards for scientific and technological innovation, improved the performance evaluation system and optimized the efficiency of research governance. Focusing on dimensions including research system development, talent teams, decision-making mechanisms and internal management, the Group added 3 new research-related management systems and 1 guideline, and revised 1 existing system, thereby establishing a solid institutional foundation for the orderly and efficient advancement of the Group’s scientific and technological innovation work as well as diversified incentives. 5. The Group continuously improved its quality management system, enhanced its smart manufacturing capabilities and developed a gradient cultivation plan for smart factories in line with industry-leading standards. During the Reporting Period, 4 of its enterprises were recognized as provincial-level advanced smart factories, and 3 as provincial-level manufacturing single champions. (III) Expanding the international footprint and strengthening cross-border business. 1. The Group continued to expand overseas markets for its pharmaceutical products. During the Reporting Period, Carbocisteine Oral Solution was successfully registered as a pharmaceutical product in Macau; Baiyunshan General Factory and Guang Hua respectively entered into strategic cooperation with Thailand General Pharmaceutical (इஷ͜ᖹุ), and Baiyunshan General Factory also signed a cooperation agreement with PT Rama Indonesia (ʮ̡) to jointly promote product launch, channel distribution and terminal promotion in the local market; Tian Xin signed a memorandum of cooperation with ADN Pharm-Sanoat, a local Uzbek pharmaceutical company, to accelerate the development of the Group’s pharmaceutical industry chain in Central Asia. 2. Natural beverages accelerated international expansion. During the Reporting Period, WLJ Great Health entered into strategic cooperation with VOZ DA SAUDADE ( ۜEMB FOOD of Spain ( Гफ˫ EMB FOOD) and Hong Xin Da of Singapore (อ̋ս҃㒥༺), established a collaborative system covering supply chain, production and distribution with Baosteel Can Manufacturing and P.C.I. Professional Canning (P.C.I.ਖ਼ุᜦༀʮ̡), and obtained Halal certification. WLJ Great Health has steadily advanced its asset-light localized production model. WLJ Great Health promoted formulation updates and new product development for Wanglaoji products in multiple countries, presented at international exhibitions including those in Vietnam and strived to enhance the international brand recognition of WALOVI.
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13 3. The Group, through its pharmaceutical distribution business, demonstrated its advantages in cross-border operations. During the Reporting Period, GP Corp. successfully facilitated the inclusion of a collaborative radiopharmaceutical product into the Hong Kong-Macao Drug and Medical Device Connect catalog, making it the first radiopharmaceutical to be included under the Connect. Its first imported drug under exclusive distribution, Iloprost Injection, had its first dose administered in China, and imported new products such as VASCEPA (Ӓ) and Lerociclib ( ϧ Գྐྵ) saw growing market uptake. The Group’s integrated cross-border supply chain service capabilities continued to improve. (IV) Steadily advancing capital operations and actively promoting market capitalization management. The Group built a fund system covering the full lifecycle of venture capital enterprises, and invested in frontier biopharmaceutical fields such as vaccines and synthetic biology so as to further leverage the catalytic effect of industrial upgrading. Industry-based M&A projects were steadily implemented. During the Reporting Period, the acquisitions of 11.04% equity in Nanjing Pharmaceutical and 100% equity in Zhejiang Yigong were completed. After the Reporting Period, Guangzhou Baiyunshan He Ji Gong Pharmaceutical Co., Ltd., a subsidiary of the Company, successfully acquired Beijing Famaxing Medical Technology Co., Ltd. by way of equity purchase and capital increase totaling RMB330 million. The Group carried out a total of 34 activities through roadshows, on-site surveys, strategy meetings, results briefings, shareholders’ meetings, and Walk into Listed Companies events, cumulatively receiving over 150 investor visits in aggregate, to maintain market confidence in the Company. The Company completed the distribution of the profit allocation for 2025, with a cash dividend of RMB0.85 per share (tax included) for 2025 (including the interim dividend), totaling approximately RMB1.382 billion, accounting for 46.32% of the net profit attributable to shareholders of the listed company in 2025. (V) Accelerating digital transformation and deepening digital and intelligent empowerment. Focusing on the full chain of drug R&D, smart manufacturing, market operations and enterprise control, the Group made coordinated efforts to advance the application of artificial intelligence technologies. During the Reporting Period, the Company established Digital Technology Company, a joint venture with Guangzhou Digital Technology Group Co., Ltd., aiming to promote deep integration of cutting-edge technologies such as AI and big data with the biopharmaceutical and healthcare industry. After the Reporting Period, the project “R&D and Application of AI Agents for New Drug Discovery Driven by Domestic Computing Power” led by Digital Technology Company was successfully selected into the AI High-Value Scenario Application Case Collection published by the Ministry of Industry and Information Technology, making it the only project from the domestic pharmaceutical
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14 industry included in this case collection. In parallel, the Group built an integrated digital foundation within the Group, coordinated the implementation of digital systems for collaborative office management, human resources and financial accounting, and advanced intensive and transparent management of IT resources across the Group. (VI) Improving the governance and control system and consolidating support for talent development. The Group advanced the refinement and systematic development of corporate governance institutions, optimized the decision-making authority list for major matters, revised the risk management procedures and the internal control manual, addressed institutional gaps, clarified process boundaries and strengthened process oversight, continuously improving the full-process compliance and risk control system. The Group deepened institutional reforms, optimized performance appraisals, strengthened incentive orientation and stimulated the internal motivation of its teams. The Group also selected and strengthened its cadre team, systematically carried out various special talent recruitment programs and consolidated the human resource support for long-term development. Significant changes to the operation of the Company during the Reporting Period and matters incurred during the Reporting Period that have had a significant impact on the operations of the Company and are expected to have a significant impact in the future. ½ Applicable ✔ Not applicable There were no material subsequent events for the Group after the Reporting Period. 4.2 Analysis of principal operations 4.2.1 Analysis of changes in financial statement related subjects Items The Reporting Period The corresponding period of 2025 Increase/ (Decrease) over the corresponding period of 2025 (RMB) (RMB) (%) Operating revenue 42,090,954,813.30 41,834,546,113.81 0.61 Include: income from principal operations 41,938,412,465.42 41,711,009,198.23 0.55 Cost of sales 34,821,046,780.71 34,171,307,857.09 1.90 Include: cost from principal operations 34,765,759,556.29 34,123,852,774.43 1.88 Selling and distribution expenses 2,850,397,604.33 3,028,477,834.76 (5.88) General and administrative expenses 1,213,923,805.63 1,202,132,382.79 0.98 Financial expenses (Note 1) 179,674,754.04 123,137,568.86 45.91 Research and development expenses 343,365,761.94 285,285,159.35 20.36
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15 Items The Reporting Period The corresponding period of 2025 Increase/ (Decrease) over the corresponding period of 2025 (RMB) (RMB) (%) Other income (Note 2) 39,981,022.16 125,656,795.41 (68.18) Gains from changes in fair value (Note 3) (20,996,215.69) (11,422,164.70) (83.82) Gains on disposal of assets (Note 4) 938,612.31 3,632,646.69 (74.16) Non-operating income (Note 5) 18,209,885.16 73,244,664.93 (75.14) Net cash flow from operating activities (Note 6) (269,950,747.12) (3,397,136,268.03) 92.05 Net cash flow from investing activities (3,513,363,184.68) (4,722,774,623.53) 25.61 Net cash flow from financing activities (Note 7) 3,121,867,471.02 1,918,310,698.76 62.74 Notes: 1. Financial expenses increased year-on-year due to: During the Reporting Period, interest expenses on interest-bearing liabilities of the Company’s subsidiaries rose year-on-year. Meanwhile, interest income from deposits decreased due to the decline in market interest rates, and exchange losses increased. 2. Other income decreased year-on-year due to: During the Reporting Period, government grants recognised by the Company’s subsidiaries decreased year-on-year. 3. Gains from changes in fair value decreased year-on-year due to: During the Reporting Period, the fair- value change of financial assets held by the Company and its subsidiaries at the end of the Reporting Period decreased year-on-year. 4. Gains on disposal of assets decreased year-on-year due to: During the Reporting Period, gains on asset disposals recognised by the Company’s subsidiaries were lower year-on-year. 5. Non-operating income decreased year-on-year due to: During the Reporting Period, compensation income received by the Company’s subsidiaries from government-led land expropriation and relocation decreased year-on-year. 6. Net cash flow from operating activities changed year-on-year due to: During the Reporting Period, the Company’s subsidiaries strengthened cash management, resulting in a year-on-year increase in payment collections. 7. Net cash flow from financing activities changed year-on-year due to: During the Reporting Period, bank borrowings of the Company’s subsidiaries increased year-on-year.
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16 4.2.2 Analysis of the Group’s principal operations during the Reporting Period by industry and by product Results of principal operations by industry Income from principal operations Cost of principal operations Gross profit margin of principal operations Operations Income from principal operations Increase/ (Decrease) over the corresponding period of 2025 Cost of principal operations Increase/ (Decrease) over the corresponding period of 2025 Gross profit margin of principal operations Increase/(Decrease) over the corresponding period of 2025 (RMB) (%) (RMB) (%) (%) (percentage point) Modernized Traditional Chinese Medicine 3,890,668,532.27 (11.06) 2,109,812,122.05 (15.88) 45.77 An increase of 3.10 percentage points Chemical Pharmaceutical Technology 1,106,189,072.02 (15.91) 484,979,054.30 (17.98) 56.16 An increase of 1.11 percentage points Natural Beverages 6,156,590,318.26 (12.40) 3,427,857,229.67 (11.85) 44.32 A decrease of 0.35 percentage point Pharmaceutical Commerce 29,936,231,987.71 6.03 28,154,861,846.76 5.81 5.95 An increase of 0.19 percentage point Others 848,732,555.16 11.94 588,249,303.51 11.75 30.69 An increase of 0.12 percentage point Total 41,938,412,465.42 0.55 34,765,759,556.29 1.88 17.10 A decrease of 1.09 percentage points 4.2.3 The regional sales of the Group’s operations during the Reporting Period are as follows: Regions Income from principal operations Increase/ (Decrease) over the corresponding period of 2025 (RMB) (%) Southern China 31,056,723,301.38 (0.44) Eastern China 4,360,055,384.46 26.43 Northern China 1,570,867,932.90 (11.01) North-Eastern China 1,294,184,281.25 3.80 South-Western China 2,515,588,005.00 (12.53) North-Western China 960,171,249.89 (9.42) Hong Kong, Macao and overseas 180,822,310.54 48.33 Total 41,938,412,465.42 0.55
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17 4.2.4 Others Detailed description of the significant changes in business type, the composition and sources of the Company’s profits during the Reporting Period. ½ Applicable ✔ Not applicable 4.3 Description of significant changes in profit resulting from non-principal operation ½ Applicable ✔ Not applicable 4.4 Analysis of financial conditions 4.4.1 Liquidity of funds As at 30 June 2026, the current ratio of the Group was 1.65 (31 December 2025: 1.57), and its quick ratio was 1.34 (31 December 2025: 1.24). During the Reporting Period, accounts receivable turnover days were 71.36 days, representing an increase of 1.22 days as compared with the end of 2025; inventory turnover was 65.86 days, representing a decrease of 6.62 days as compared with the end of 2025. 4.4.2 Financial resources As at 30 June 2026, cash and cash equivalents of the Group amounted to RMB11,888,194,776.36 (31 December 2025: RMB12,556,315,478.42), of which approximately 97.99% and 2.01% were denominated in Renminbi and foreign currencies including Hong Kong dollar, respectively. As at 30 June 2026, the Group had bank borrowings of RMB18,347,031,793.54 (31 December 2025: RMB14,154,155,920.66) including short-term borrowings of RMB12,573,408,502.46 (31 December 2025: RMB9,558,287,637.24), and long-term borrowings of RMB4,475,589,195.03 (31 December 2025: RMB2,569,307,895.97), non- current liabilities expiring within one year of RMB1,298,034,096.05 (31 December 2025: RMB2,026,560,387.45). 4.4.3 Capital structure As at 30 June 2026, the Group’s current liabilities amounted to RMB38,978,934,817.22 (31 December 2025: RMB39,124,708,469.33), representing a decrease of 0.37% as compared to the beginning of 2026, and its long-term liabilities amounted to RMB7,357,953,713.97 (31 December 2025: RMB5,303,562,878.61), representing an increase of 38.74% as compared to the beginning of 2026. Shareholders’ equity attributable to the shareholders of the Company amounted to RMB39,132,046,564.44 (31 December 2025: RMB37,788,048,346.79), representing an increase of 3.56% as compared to the beginning of 2026.
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18 4.4.4 Capital expenditure The Group expects the capital expenditure in 2026 to be approximately RMB2.152 billion among which the expenditure in the first half of 2026 amounted to RMB0.536 billion (in the first half of 2025: RMB0.649 billion), which would be mainly applied in the construction of production bases, upgrading of equipment and set-up of information systems, etc. The Board has carefully considered the materiality of such capital expenditure. The Group will raise funds to meet the capital requirements of capital expenditure through its internal funds, bank borrowings, etc. As at the date of this summary, the Company currently has no plans to conduct any fundraising activities in the coming year. The senior management of the Company will prudently assess the need for any fundraising activities having regard to changes in market conditions, funding requirements and development strategies. Should the Company have any fundraising plans in the future, it will strictly comply with the applicable listing rules in Shanghai and Hong Kong and make timely disclosure of the relevant information to the shareholders and the public. 4.4.5 Description of assets and liabilities Items Amount as at 30 June 2026 Percentage of the total assets Amount as at 31 December 2025 Percentage of the total assets Increase/ (Decrease) as compared to 31 December 2025 Reasons for changes (RMB) (%) (RMB) (%) (%) Financial Assets at Fair Value through Profit or Loss 0.00 0.00 4,000,000.00 0.00 (100.00) During the Reporting Period, the financial products held by the Company’s subsidiaries matured in the current year. Other Current Assets 7,819,605,401.50 8.90 5,694,728,482.83 6.74 37.31 During the Reporting Period, the Company’s subsidiaries purchased large-denomination certificates of deposit and time deposits with maturities of within one year. Investments in Associates and Joint Ventures 2,537,951,831.35 2.89 1,584,359,975.87 1.87 60.19 During the Reporting Period, the Company steadily advanced its capital operations and intensified its external investment layout. Biological Assets – Bearer Plants 3,645,127.95 0.00 771,362.10 0.00 372.56 During the Reporting Period, the Company’s subsidiaries newly recognised productive biological assets. Other Non-current Assets 341,018,133.00 0.39 232,436,018.49 0.28 46.71 During the Reporting Period, advance payments for construction projects made by the Company’s subsidiaries in accordance with contracts increased year- on-year. Bank Borrowings – Current Portion 12,573,408,502.46 14.32 9,558,287,637.24 11.31 31.54 During the Reporting Period, the Company’s subsidiaries took out new bank borrowings to supplement working capital.
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19 Items Amount as at 30 June 2026 Percentage of the total assets Amount as at 31 December 2025 Percentage of the total assets Increase/ (Decrease) as compared to 31 December 2025 Reasons for changes (RMB) (%) (RMB) (%) (%) Advances from Customers 2,401,441.94 0.00 1,468,727.86 0.00 63.50 During the Reporting Period, advance rental payments received by the Company’s subsidiaries increased compared with the beginning of the period. Contract Liabilities 1,229,227,203.00 1.40 2,833,240,650.21 3.35 (56.61) During the Reporting Period, the subsidiaries fulfilled delivery for orders corresponding to advance receipts from customers of the previous year and recognised sales revenue, resulting in a decrease in the balance of advance receipts compared with the beginning of the period. Current Portion of Non-current Liabilities 1,477,968,011.75 1.68 2,211,756,510.39 2.62 (33.18) During the Reporting Period, the Company’s subsidiaries repaid the long-term borrowings due within one year as at the beginning of the period. Other Current Liabilities 458,897,882.31 0.52 658,040,915.23 0.78 (30.26) During the Reporting Period, taxes pending for transfer- out from advance receipts due within one year of the Company’s subsidiaries decreased. Bank Borrowings – Non-current Portion 4,475,589,195.03 5.10 2,569,307,895.97 3.04 74.19 During the Reporting Period, bank borrowings of the Company’s subsidiaries increased year-on-year. Other Non-current Liabilities 129,047,272.87 0.15 55,339,749.02 0.07 133.19 During the Reporting Period, the Company’s subsidiaries received land acquisition-and-reserve compensation payments. Other Comprehensive Income (42,911,232.27) (0.05) (22,597,705.49) (0.03) (89.89) During the Reporting Period, the fair-value change of financial assets of the Company and its subsidiaries decreased, together with a reduction in the foreign- currency translation difference of the Company’s subsidiaries. 4.4.6 Exposure to fluctuations in exchange rates As the majority of the revenue, expenses, assets and liabilities of the Group are denominated or settled in Renminbi, the Group did not have significant risks of exposure to fluctuations in exchange rates. Changes in exchange rates will affect the value of assets, liabilities, and overseas investment entities denominated in foreign currencies, and indirectly cause changes in the Group’s earnings or cash flows for a certain period of time. During the Reporting Period, changes in foreign exchange had no significant impact on the Group’s operating results and cash flows. The Group will continue to monitor potential foreign exchange risks in the process of foreign exchange settlement and will implement appropriate hedging measures when necessary to mitigate such risks.
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20 4.4.7 Contingent liabilities As at 30 June 2026, the Group had no material contingent liabilities. 4.4.8 Charge on the Group’s assets As at 30 June 2026, Guangyao Baiyunshan Hong Kong Company, a subsidiary of the Company, pledged its property and buildings under fixed assets with an original cost of HKD8,892,895.00 and a net carrying amount of HKD5,758,092.44, and its investment properties with an original cost of HKD6,842,608.50 and a net carrying amount of HKD2,776,276.30, as security for banking facilities obtained from Bank of China (Hong Kong) Limited, comprising an overdraft facility of HKD300,000.00 and aggregate facilities of HKD100,000,000.00 for letters of credit and 90-day credit terms. As at the same date, no outstanding letters of credit had been issued. Guangyao (Hainan) Pharmaceutical Co., Ltd., a subsidiary of the Group, pledged its land-use right (an intangible asset) with an original cost of RMB27,327,410.68 and a net carrying amount of RMB25,869,948.92, and its construction-in-progress with an original cost of RMB19,078,145.67 and a net carrying amount of RMB19,078,145.67, as security for banking facilities obtained a loan with a principal amount of RMB50,689,468.55 from China Development Bank Hainan Branch. 4.4.9 Bank loans, overdrafts and other borrowings As at 30 June 2026, the Group’s bank loans amounted to RMB18,347,031,793.54 (31 December 2025: RMB14,154,155,920.66), representing an increase of RMB4,192,875,872.88 over the beginning of 2026. The above bank loans included short-term borrowings of RMB12,573,408,502.46, long-term borrowings of RMB4,475,589,195.03 and non-current liabilities expiring within one year of RMB1,298,034,096.05. 4.4.10 Gearing ratio As at 30 June 2026, the Group’s gearing ratio (total liabilities/total assets Ò100%) was 52.76% (31 December 2025: 52.57%). 4.4.11 Material investment The investment status of the Group has been disclosed in “4.5 Analysis of investment situation” of “4. MAJOR EVENTS” in this summary. As at 30 June 2026, the Group did not hold any material investments.
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21 4.5 Analysis of investment situation Overall analysis on equity investment ✔ Applicable ½ Not applicable As at the end of the Reporting Period, the Group’s equity investment amounted to RMB2,537,951,831.35, representing an increase of RMB953,591,855.48 since 31 December 2025. The change was mainly attributable to the Company steadily advancing its capital operations and intensified its external investment layout during the Reporting Period. 4.6 Analysis of the Group’s major subsidiaries and investees ✔ Applicable ½ Not applicable Information on major subsidiaries and investee companies with equity interests whose impact on the Company’s net profit exceeds 10% ✔ Applicable ½ Not applicable Name of enterprise Type of corporation Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit (RMB’0,000) (RMB’0,000) (RMB’0,000) (RMB’0,000) (RMB’0,000) (RMB’0,000) WLJ Great Health Subsidiary Production and sales of pre-packaged food, etc. 100,000.00 1,888,694.22 1,300,506.64 561,497.89 110,649.78 93,326.64 GP Corp. Subsidiary Wholesale and Retail Business 244,930.55 4,080,288.49 852,741.51 3,042,751.91 37,782.43 28,306.68 During the Reporting Period, except for WLJ Great Health and GP Corp. as mentioned in the above table, no single subsidiary’s net profit or single investee’s investment income accounted for 10% or more of the Group’s net profit. During the Reporting Period, the Group did not have other operating activities which had a significant impact on net profit.
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22 4.7 Plan for profit distribution or increase of share capital from capital reserve Half-year profit distribution plan or plan to increase share capital by converting the capital reserve Any distribution or conversion Yes Number of bonus shares to be distributed for every ten shares (share) / Amount of dividends to be distributed for every ten shares (RMB inclusive of tax) 3.00 Cash dividend amount (RMB inclusive of tax) 487,737,284.70 Number of shares for every ten shares issued from conversion of capital reserve (share) / Explanation on plan of profit distribution and plan of converting capital reserve into share capital / Note: 1. The Company did not implement any conversion of capital reserves into share capital during the past three years; 2. The Company will distribute the above dividend no later than the end of September 2026. 4.8 Plans for the second half of 2026 In the second half of 2026, the Group will continue to focus on its core industrial chain and prioritize the following tasks: 1. Strengthen core business operations to achieve quality improvement and efficiency enhancement. First, the Group will continue to implement the cultivation program for flagship products and high-potential varieties, promote reform of the marketing system. Second, the Group will carry out sales and promotion work across all channels for natural beverages, concentrate resources and momentum to ensure that new products are launched on schedule. Third, the Group will stabilize the core of the wholesale business, drive the retail business to expand volume and improve quality, and continue to optimize product mix and channel layout.
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23 2. Intensify its efforts in technology innovation to tackle key challenges and accelerate the translation of research outcomes. First, the Group will strengthen its R&D talent team and continue to implement the recruitment program for high-end leading talents. Second, the Group will reinforce technology platform development, enhance the overall capabilities of innovation platforms and accelerate the translation and commercialization of innovative technologies. Third, the Group will increase R&D investment and leverage R&D business development to rapidly expand the pipeline portfolio. Fourth, the Group will improve the system and mechanisms for technological innovation, refine the R&D management framework, and optimize project decision-making, innovation assessment, diversified incentives and a scientific fault- tolerant mechanism. Fifth, the Group will expedite collaboration and alignment with major universities to establish a collaborative innovation system featuring deep integration of industry, academia, research and application. 3. Expand overseas markets and accelerate its global footprint. The Group will advance in-depth cooperation with large local pharmaceutical distributors and leading food and beverage companies in Vietnam, Malaysia, Uzbekistan and other countries to strengthen channel penetration and brand visibility; and the Group will focus on key overseas markets, advance the establishment of dedicated teams for Vietnam and Central Asia, and create a model for localized overseas operations. 4. Intensify capital operations to empower industrial upgrading. The Group will fully advance investment and M&A projects, strengthen full-cycle management covering pre-investment, investment and post-investment, and empower the acquired enterprises to achieve sound development from dimensions such as corporate governance, resource alignment and cultural integration. 5. Deepen digital and intelligent transformation to empower development across all domains. Focusing on the five dimensions of computing power infrastructure development, data asset governance, model development and iteration, scenario validation and expansion, and ecosystem collaboration and co-construction, the Group will systematically advance the development of AI drug research platform; accelerate the construction of the Group’s integrated digital platform; and continue to strengthen digital management effectiveness.
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24 6. Integrate industrial resources to improve management quality and efficiency. The Group will continue to deepen industrial restructuring and integration, and continuously improve the management system for professional platforms; facilitate internal talent mobility channels, improve supporting mechanisms for employee career development and achieve efficient and optimized allocation of human resources; and continue to deepen compliance management, coordinate the advancement of an integrated system of policies, compliance, internal control and risk management, and leverage the supervision mechanism of the centralized procurement platform to fully unleash the scale benefits of cost reduction and efficiency enhancement. 4.9 During the Reporting Period, neither the Company nor any of its subsidiaries repurchased, sold, or redeemed any of the Company’s listed shares, including the sale of any treasury shares. As at the end of the Reporting Period, the Company did not hold any treasury shares, including any treasury shares held or deposited in the Central Clearing and Settlement System. 4.10 During the Reporting Period, the Company has not made any material investments, material acquisitions or disposals in respect of its subsidiaries, associates or joint ventures. No other material matters requiring disclosure have arisen, nor are there any other future material investment or capital expenditure plans. 4.11 Corporate governance During the Reporting Period, the Company fully complied with the provisions under the Corporate Governance Code as set out in Appendix C1 to the Listing Rules of HKEX (“CG Code”). The Board continues to monitor and review the Company’s corporate governance practices to ensure compliance with the provisions of the CG Code and will provide the Directors with more flexible means of attending meetings.
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25 4.12 Model Code for securities transactions by Directors The Company has adopted the Model Code, “Interim Measures for the Management of Shareholders’ Reduction of Shares in Listed Companies” ΅၍ଣᅲБ , “Guidelines for Self discipline Supervision of Listed Companies on the Shanghai Stock Exchange No. 15 – Shareholders, Directors and Senior Management to Reduce Shareholdings” ˏୋ 15 – ΅ and “Measures for the Administration of Trading Shares of the Company by Directors and Senior Management Personnel of the Company” ၍ as stipulated by the Company as the codes and criteria for securities transactions by the Directors of the Company. After making specific inquiries to all the current Directors, the Company confirmed that all its current Directors have fully complied with the standards relating to directors’ dealing in securities as set out in the above codes and standards during the Reporting Period. 4.13 The Audit Committee under the tenth session of the Board comprised four independent non-executive directors, of whom Mr. Wong Lung Tak Patrick is the chairman of the Audit Committee. The Audit Committee of the Company had reviewed the Group’s accounting principles, accounting standards and methods, and had discussed auditing, risk management, internal controls and financial reporting matters with the management, including a review of the unaudited interim report for the six months ended 30 June 2026. The Audit Committee and the external auditors had no disagreements with the accounting treatment adopted by the Company. The Board confirms that the interim results have been reviewed by the Audit Committee and the external auditors. 4.14 Changes in the Directors and senior management of the Company, and their information during the Reporting Period ✔ Applicable ½ Not applicable Name Position in the Company Changes Reasons for Changes Explanation for Changes Chen Jiehui Executive Director, Chairperson Election Rotation / Yuan Cheng Executive Director, Vice chairperson, General manager Election Rotation / Liu Lan Executive Director Election Rotation / Liu Hong Executive Director, Employee Representative Director Election Rotation /
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26 Name Position in the Company Changes Reasons for Changes Explanation for Changes Huang Jiyuan Non-executive Director Election Rotation / Wu Xiangneng Independent non- executive Director Election Rotation / Yang Yinbao Independent non- executive Director Election Rotation / Li Xiaojun Executive Director, Chairperson Departure Rotation / Li Hong Executive Director, General manager Departure Rotation / Chen Yajin Independent non- executive Director Departure Rotation / Huang Min Independent non- executive Director Departure Rotation / Chen Jiehui Vice chairperson Departure Rotation / Cheng Ning Vice chairperson Departure Retirement / Explanation on changes in Directors and senior management of the Company ✔ Applicable ½ Not applicable 1. At the 2025 Annual General Meeting held on 29 May 2026, Mr. Chen Jiehui, Mr. Yuan Cheng, Mr. Cheng Hongjin, Mr. Tang Heping, Ms. Liu Lan, Mr. Huang Jiyuan, Mr. Wong Lung Tak Patrick, Ms. Sun Baoqing, Mr. Wu Xiangneng and Mr. Yang Yinbao were elected as the non-employee representative Directors of the tenth session of the Board. At the Employee Representatives’ Congress on 13 May 2026, Mr. Liu Hong was elected as the employee representative Director of the tenth session of the Board. The above-mentioned eleven Directors collectively constitute the tenth Board of Directors. Their term of office shall commence on the date of their appointment and expire upon the end-date of the term of the tenth Board of Directors. 2. The Company convened the 3rd meeting of the tenth session of the Board on 9 July 2026, which resolved to appoint Mr. Liu Yanping and Mr. Wang Jiansong as Deputy General Managers of the Company. Their terms of office shall commence on the date of appointment and expire upon the expiry of the term of office of the tenth session of the Board.
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27 In accordance with Rule 13.51B(1) of the Listing Rules of HKEX, the details of the changes in information of Directors and senior management after the publication of the annual report for the year ended 31 December 2025 are set out below: Name of Directors/Senior Management Details of the changes Zheng Jianxiong He ceased to act as a director of Guangzhou Zhongcheng Medical Device Industry Development Co., Ltd. in February 2026; he ceased to serve as a director of Cai Zhi Lin in July 2026, and also ceased to act as chairman and director of Guangzhou Shennong Modern Agriculture Co., Ltd.; and he was appointed Chairman of Guangyao Baiyunshan Hong Kong Company in June 2026. Liu Fei She ceased to act as a director of Tianxin and Cai Zhi Lin in July 2026. The Company completed the rotation of the Board on 29 May 2026. The biographical details of newly appointed, re-elected and retiring Directors have been disclosed in previous announcements and circulars. Save as disclosed above, there are no other changes to the information of any Directors and chief executive which are required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules of HKEX in the period from the date of publication of the Company’s 2025 Annual Report up to the date of this Interim Report. 4.15 As at the end of the Reporting Period, the number of employees on the Group’s payroll was 26,365. The total salary payment of the Group for the first half of 2026 was approximately RMB1.821 billion. 4.16 Others ✓ Applicable ½ Not applicable On 2 March 2026, GP Corp. and Industrial Securities Asset Management entered into the Sixth Completion Confirmation Letter of the New Underlying Assets based on the Industry Yuanrong – Accounts Receivable Phase IV of GP Corp. Asset-backed Special Scheme. On 27 April 2026, GP Corp. and Industrial Securities Asset Management entered into the Agreement on Sale and Purchase of Underlying Assets of the Xingzheng Yuanrong – Accounts Receivable Phase V of GP Corp. Asset-backed Special Scheme, with an issue size of RMB1 billion. Subsequently, GP Corp. and Industrial Securities Asset Management entered into a Completion Confirmation Letter. As at 30 June 2026, the aggregate book value of the accounts receivable sold by GP Corp. during the year was RMB1.444 billion, and the total purchase price received was RMB1.426 billion. For details, please refer to the announcement of the Company dated 22 May 2026.
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28 5. FINANCIAL REPORTS 5.1 Financial statements prepared in accordance with the China Accounting Standards for Business Enterprises (All amounts in Renminbi yuan unless otherwise stated) Consolidated Balance Sheet Item Note 30 June 2026 31 December 2025 (Unaudited) (Audited) Current assets: Cash at bank and on hand 13,289,244,308.52 14,940,092,971.81 Financial assets held for trading – 4,000,000.00 Derivative financial assets – – Notes receivable 587,733,544.49 491,345,369.80 Accounts receivable 5.1.3 18,974,345,581.22 16,849,441,972.96 Accounts receivable financing 3,611,287,183.56 3,599,255,106.20 Advances to suppliers 851,472,802.13 970,317,450.32 Other receivables 1,332,146,669.88 1,186,185,444.48 Including: Interest receivable – – Dividends receivable 1,500,000.00 1,500,000.00 Inventories 12,094,250,681.83 13,138,250,768.05 Contract assets – – Assets held for sales – – Current portion of non-current assets 5,820,436,575.69 4,644,664,557.28 Other current assets 7,819,605,401.50 5,694,728,482.83 Total current assets 64,380,522,748.82 61,518,282,123.73
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29 Item Note 30 June 2026 31 December 2025 (Unaudited) (Audited) Non-current assets: Debt investment 5,756,187,415.12 6,605,607,999.15 Other debt investment – – Long-term receivables – – Long-term equity investment 2,537,951,831.35 1,584,359,975.87 Other equity instrument investment 86,653,457.10 96,174,005.96 Other non-current financial assets 489,657,046.91 506,653,262.60 Investment properties 145,120,646.09 140,377,272.29 Fixed assets 6,603,095,032.32 6,731,756,109.45 Construction in progress 1,373,982,184.28 1,149,620,788.63 Bearer biological assets 3,645,127.95 771,362.10 Oil and gas assets – – Right-of-use assets 514,793,674.96 482,779,752.98 Intangible assets 3,158,925,084.09 3,181,185,613.17 Development expenditure 4,937,826.31 4,937,826.31 Goodwill 919,938,473.87 834,090,912.89 Long-term prepaid expenses 153,240,918.97 155,617,184.61 Deferred tax assets 1,352,399,028.87 1,286,489,802.03 Other non-current assets 341,018,133.00 232,436,018.49 Total non-current assets 23,441,545,881.19 22,992,857,886.53 TOTAL ASSETS 87,822,068,630.01 84,511,140,010.26 Current liabilities: Short-term borrowings 12,573,408,502.46 9,558,287,637.24 Financial liabilities held for trading – – Derivative financial liabilities – – Notes payable 4,275,523,086.51 5,072,326,244.27 Accounts payable 5.1.4 12,659,415,362.68 12,499,055,570.01 Advances from customers 2,401,441.94 1,468,727.86 Contract liabilities 1,229,227,203.00 2,833,240,650.21 Employee benefits payable 777,155,910.98 952,853,661.28 Taxes payable 395,115,662.92 306,106,564.85 Other payables 5,129,821,752.67 5,031,571,987.99 Including: Interest payable – – Dividends payable 149,910,895.25 53,189,827.58 Liabilities held for sales – – Current portion of non-current liabilities 1,477,968,011.75 2,211,756,510.39 Other current liabilities 458,897,882.31 658,040,915.23 Total current liabilities 38,978,934,817.22 39,124,708,469.33
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30 Item Note 30 June 2026 31 December 2025 (Unaudited) (Audited) Non-current liabilities: Long-term borrowings 4,475,589,195.03 2,569,307,895.97 Bonds payable 610,066,191.78 604,442,794.52 Lease liabilities 404,533,250.82 371,472,631.30 Long-term payables 19,666,964.60 19,666,964.60 Long-term employee benefits payable 281,073.72 292,293.37 Provisions 40,821,307.58 41,733,362.24 Deferred income 1,078,464,653.11 1,041,939,804.72 Deferred tax liabilities 599,483,804.46 599,367,382.87 Other non-current liabilities 129,047,272.87 55,339,749.02 Total non-current liabilities 7,357,953,713.97 5,303,562,878.61 Total liabilities 46,336,888,531.19 44,428,271,347.94 Shareholders’ equity: Share capital 1,625,790,949.00 1,625,790,949.00 Capital surplus 10,323,519,391.33 10,323,519,391.33 Less: Treasury shares – – Other comprehensive income (42,911,232.27) (22,597,705.49) Surplus reserve 2,479,021,218.22 2,479,021,218.22 Undistributed profits 24,746,626,238.16 23,382,314,493.73 Total equity attributable to shareholders of the parent company 39,132,046,564.44 37,788,048,346.79 Minority interest 2,353,133,534.38 2,294,820,315.53 Total shareholders’ equity 41,485,180,098.82 40,082,868,662.32 TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY 87,822,068,630.01 84,511,140,010.26
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31 Consolidated Income Statement Item Notes For the six months ended 30 June 2026 For the six months ended 30 June 2025 (Unaudited) (Unaudited) 1. Operating income 5.1.5 42,090,954,813.30 41,834,546,113.81 Less: Operating costs 5.1.5 34,821,046,780.71 34,171,307,857.09 Taxes and surcharges 177,498,243.74 181,558,008.60 Selling and distribution expenses 2,850,397,604.33 3,028,477,834.76 General and administrative expenses 1,213,923,805.63 1,202,132,382.79 R&D expenses 343,365,761.94 285,285,159.35 Financial expenses 179,674,754.04 123,137,568.86 Including: Interest expenses 214,198,123.57 204,001,098.97 Interest income 52,111,661.12 84,796,417.84 Add: Other income 39,981,022.16 125,656,795.41 Investment income 186,291,006.97 221,112,518.58 Including: In come from investments in associates and joint ventures 36,121,478.26 (11,673,633.37) Derecognition income of financial assets measured at amortized cost (13,278,108.67) (10,378,682.66) Gains from changes in fair value (20,996,215.69) (11,422,164.70) Impairment losses in respect of credit (115,278,377.74) (148,309,535.10) Impairment losses in respect of assets (5,676,163.00) (6,787,312.76) Gains on disposal of assets 938,612.31 3,632,646.69 2. Operating profit 2,590,307,747.90 3,026,530,250.48 Add: Non-operating income 18,209,885.16 73,244,664.93 Less: Non-operating expenses 6,820,353.06 9,358,586.30 3. Total profit 2,601,697,280.02 3,090,416,329.11 Less: Income tax expenses 5.1.6 442,930,475.46 514,493,936.82
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32 Item Notes For the six months ended 30 June 2026 For the six months ended 30 June 2025 (Unaudited) (Unaudited) 4. Net profit 2,158,766,804.56 2,575,922,392.29 (1) Classified by the continuity of operations A. Net profit from continuing operations 2,158,766,804.56 2,575,922,392.29 B. Net profit from discontinued operations – – (2) Classified by ownership of the equity A. Net profit attributable to the parent company’s shareholders 2,095,917,671.48 2,516,140,986.67 B. Minority interest 62,849,133.08 59,781,405.62 5. Other comprehensive income, net of tax (20,605,019.49) (9,199,136.51) Other comprehensive income, net of tax attributable to the parent company’s shareholders (20,313,526.78) (9,294,706.66) (1) Other comprehensive income that will not be reclassified to profit or loss (9,520,548.86) (7,214,802.63) A. Changes arising from the remeasurement of defined benefit obligation – – B. Other comprehensive income that will not be reclassified to profit or loss under equity method – – C. Change in fair value of other equity instrument investment (9,520,548.86) (7,214,802.63) D. Change in fair value of the company’s own credit risk – – E. Others – – (2) Other comprehensive income that may be reclassified into profit or loss (10,792,977.92) (2,079,904.03) A. Other comprehensive income that may be reclassified to profit or loss under equity method – – B. Change in fair value of other debt investment (3,968,160.00) (3,360,426.08)
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33 Item Notes For the six months ended 30 June 2026 For the six months ended 30 June 2025 (Unaudited) (Unaudited) C. Gains and losses arising from changes in fair value of available-for-sale financial assets – – D. The amount of financial assets reclassified into other comprehensive income – – E. Gains and losses arising from reclassification of held-to-maturity investment to available-for-sale financial assets – – F. Provision for credit loss of other debt investment 1,048,071.86 4,317,819.63 G. Cash flow hedge reserve – – H. Difference arising from the translation of foreign currency financial statements (7,872,889.78) (3,037,297.58) I. Others – – Other comprehensive income, net of tax attributable to minority shareholders (291,492.71) 95,570.15 6. Total comprehensive income 2,138,161,785.07 2,566,723,255.78 (1) Total comprehensive income attributable to shareholders of the parent company 2,075,604,144.70 2,506,846,280.01 (2) Total comprehensive income attributable to minority shareholders 62,557,640.37 59,876,975.77 7. Earnings per share (EPS): (1) Basic earnings per share 1.289 1.548 (2) Diluted earnings per share 1.289 1.548
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34 5.1.1 Basis of preparation of financial statements (1) Basis of preparation The Group’s financial statements have been prepared in accordance with the Basic Standard of Accounting for Business Enterprises and the specific accounting standards, application guides, interpretations and other relevant provisions (collectively referred to as the “Accounting Standards for Business Enterprises”) issued by the Ministry of Finance, as well as the relevant provisions of the China Securities Regulatory Commission’s “Public Offering of Securities Companies Information Disclosure and Reporting Rules No. 15 – General Provisions on Financial Reporting”. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited and the applicable disclosure requirements of the Hong Kong Companies Ordinance. (2) Going concern The Group has the ability to continue as a going concern in the next 12 months since the end of the reporting period. There is no material even that may cast significant doubt upon the Group’s ability to continue as a going concern. 5.1.2 Information of Segments In alignment with the Group’s strategic management deployment and the expansion of its business segments, the Group is currently engaged in the industrial chain layout and the establishment of internal organizational structures across the following sectors: “Modern Chinese Medicine,” “Chemical Pharmaceutical Technology,” “Natural Beverages,” “Pharmaceutical Commerce,” and other business segments. In accordance with regulatory requirements and internal management practices, the Group has designated these five areas as its reportable operating segments. The details of each segment are as follows: • Modern Chinese Medicine Segment: Research and development, manufacturing, and sales of proprietary Chinese medicines and natural medicines; • Chemical Pharmaceutical Technology Segment: Research and development, manufacturing, and sales of chemical drugs, chemical active pharmaceutical ingredients (APIs), and chemical intermediates; • Natural Beverages Segment: Research and development, production, and sales of health-oriented products; • Pharmaceutical Commerce Segment: Wholesale, retail, and import/export of Western medicines, Chinese medicines, and medical devices;
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35 • Other Segments: Primarily including biotechnology innovation, consumer health, and medical services. Price transfer between segments is carried out in accordance with the price policy of sales to third party. Assets and liabilities are allocated based on the segment operations expenses attributable indirectly to each segment are allocated among segments based on the portion of revenue. (1) The segment information for the 6 months ended 30 June 2026 and as of 30 June 2026 is as follows: Items Modern Chinese Medicine Chemical Pharmaceutical Pharmaceutical Commerce Natural Beverages Other Offset between segments Total External revenue 3,930,608,040.62 1,134,988,624.91 30,007,384,041.69 6,160,923,857.37 857,050,248.71 – 42,090,954,813.30 Inter-segment revenue 192,689,465.69 34,669,717.60 420,135,079.85 (18,068,289.65) 2,170,636,171.64 (2,800,062,145.13) – Interest income (3,520,673.04) (6,734,955.68) (15,544,700.02) (12,175,460.12) (14,135,872.26) – (52,111,661.12) Interest expenses 10,246,350.46 1,370,154.74 193,292,238.70 8,955,198.74 1,545,657.99 (1,211,477.06) 214,198,123.57 Income from investments in associates and joint ventures (249,152.76) – (227,038.11) – 36,066,510.59 531,158.54 36,121,478.26 Impairment losses in respect of credit (3,585,645.70) 2,324,149.15 (111,703,141.37) 9,925.45 6,754,161.70 (9,077,826.97) (115,278,377.74) Impairment losses in respect of assets 1,368,890.01 (9,530,120.33) 3,050,534.24 – (565,466.92) – (5,676,163.00) Depreciation and amortization expenses 122,215,154.17 75,945,260.79 162,778,765.62 42,836,328.66 87,029,042.87 (2,412,130.41) 488,392,421.70 Total profit 533,660,794.10 166,873,345.57 380,500,350.59 1,191,984,336.07 220,396,962.02 108,281,491.67 2,601,697,280.02 Total assets 11,793,978,615.65 7,281,612,732.47 40,802,884,948.57 19,981,731,702.28 19,377,958,801.09 (11,416,098,170.05) 87,822,068,630.01 Total liabilities 6,004,473,912.11 3,768,029,860.19 32,275,469,879.05 6,406,637,557.22 10,674,419,889.51 (12,792,142,566.89) 46,336,888,531.19 Long-term equity investment in associates and joint ventures 89,323.42 – 18,180,771.50 – 2,565,279,836.43 (45,598,100.00) 2,537,951,831.35 Increase in other non-current assets excluding long-term equity investment 98,705,422.04 21,939,470.94 126,168,993.34 71,472,058.93 200,086,655.15 – 518,372,600.40
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36 (2) The segment information for the 6 months ended 30 June 2025 and as of 31 December 2025 is as follows: Items Modern Chinese Medicine Chemical Pharmaceutical Pharmaceutical Commerce Natural Beverages Other Offset between segments Total External revenue 4,407,021,619.81 1,338,887,546.42 28,289,406,698.09 7,030,641,149.10 768,589,100.39 – 41,834,546,113.81 Inter-segment revenue 951,952,161.86 156,535,150.36 653,068,215.09 22,761,227.45 2,398,221,086.66 (4,182,537,841.42) – Interest income (8,545,451.66) (3,794,923.28) (19,745,536.30) (33,378,646.36) (19,331,860.24) – (84,796,417.84) Interest expenses 10,827,884.13 1,686,482.25 184,825,478.57 4,197,871.48 3,067,514.64 (604,132.10) 204,001,098.97 Income from investments in associates and joint ventures – – 120,920.85 – (12,198,033.99) 403,479.77 (11,673,633.37) Impairment losses in respect of credit 1,798,412.12 409,399.40 (135,041,442.31) (4,460.60) (4,782,043.42) (10,689,400.29) (148,309,535.10) Impairment losses in respect of assets (1,287,012.61) (2,738,139.98) (3,098,257.39) – 336,097.22 – (6,787,312.76) Depreciation and amortization expenses 116,811,090.19 66,435,828.52 184,290,140.00 44,218,198.67 69,800,371.51 (3,341,331.74) 478,214,297.15 Total profit 700,273,925.49 238,840,355.82 321,412,828.30 1,581,613,737.90 385,430,684.93 (137,155,203.33) 3,090,416,329.11 Total assets 11,768,493,399.91 7,956,791,780.53 37,996,803,086.01 19,278,167,767.14 34,444,848,733.40 (26,933,964,756.73) 84,511,140,010.26 Total liabilities 6,205,202,101.11 4,434,816,787.56 29,749,243,248.27 6,740,319,699.12 10,279,322,304.89 (12,980,632,793.01) 44,428,271,347.94 Long-term equity investment in associates and joint ventures 65,476.18 – 15,957,809.61 – 1,568,336,690.08 – 1,584,359,975.87 Increase in other non-current assets excluding long-term equity investment 158,157,902.31 52,970,803.21 232,789,041.45 88,232,117.84 179,852,874.28 – 712,002,739.09 The Group’s total revenue from external customers in the PRC and other countries/regions, and the total non-current assets other than financial assets and deferred tax assets located in the PRC and other countries/regions are summarized as follows: External revenue January to June of 2026 January to June of 2025 PRC 41,910,132,502.76 41,712,637,205.18 Other countries/regions 180,822,310.54 121,908,908.63 42,090,954,813.30 41,834,546,113.81 Total non-current assets 30 June 2026 31 December 2025 PRC 15,745,308,291.97 14,485,659,663.92 Other countries/regions 11,340,641.22 12,273,152.87 15,756,648,933.19 14,497,932,816.79
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37 5.1.3 Accounts receivable The aging analysis of accounts receivable based on booking date is as follows: 30 June 2026 31 December 2025 Within 1 year 16,926,967,932.44 15,177,680,530.88 1 to 2 years 2,022,515,162.02 1,699,642,028.29 2 to 3 years 432,302,692.83 349,973,452.37 3 to 4 years 184,891,127.99 110,744,262.02 4 to 5 years 59,466,104.77 49,299,648.36 Over 5 years 293,343,599.71 267,403,277.45 Less: Provision for bad debts 945,141,038.54 805,301,226.41 18,974,345,581.22 16,849,441,972.96 5.1.4 Accounts payable The aging analysis of accounts payable based on booking date is as follows: 30 June 2026 31 December 2025 Within 1 year 11,956,378,764.48 12,016,531,510.75 Over 1 year 703,036,598.20 482,524,059.26 12,659,415,362.68 12,499,055,570.01 5.1.5 Operating income and Operating costs For the 6 months ended 30 June 2026 Main businesses Other businesses Subtotal Operating income 41,938,412,465.42 152,542,347.88 42,090,954,813.30 Operating costs 34,765,759,556.29 55,287,224.42 34,821,046,780.71 Gross profit 7,172,652,909.13 97,255,123.46 7,269,908,032.59 For the 6 months ended 30 June 2025 Main businesses Other businesses Subtotal Operating income 41,711,009,198.23 123,536,915.58 41,834,546,113.81 Operating costs 34,123,852,774.43 47,455,082.66 34,171,307,857.09 Gross profit 7,587,156,423.80 76,081,832.92 7,663,238,256.72
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38 5.1.6 Income tax expenses For the 6 months ended 30 June 2026 For the 6 months ended 30 June 2025 Current income tax expenses 507,634,655.49 542,927,143.85 Deferred income tax expenses (64,704,180.03) (28,433,207.03) 442,930,475.46 514,493,936.82 Income tax expenses derived from reconciliation of income tax calculated by applicable tax rate based on total profit in the consolidated income statement: For the 6 months ended 30 June 2026 Total profit 2,601,697,280.02 Income tax calculated at statutory rate 390,254,592.06 Tax effect of different rates applicable to subsidiaries in the scope of consolidation 41,849,513.43 Effect of income tax adjustment for prior period 9,600,800.99 Non-taxable and tax relief income (10,729,941.79) Non-deductible costs, expenses and losses 5,372,767.87 Effect of using deductible losses of deferred tax assets unrecognized in prior period (653,875.45) Effect of deductible temporary differences and deductible losses which are not recognized in current period 42,516,844.36 Tax effect of R&D expenditure deduction (35,702,001.10) Changes in the balance of deferred income tax assets/liabilities at the beginning of the year due to tax rate adjustments 421,775.09 Income tax expenses 442,930,475.46 According to the state’s relevant tax preferential policies for High/New enterprises, qualified High/New enterprises can enjoy preferential corporate income tax policies and pay corporate income tax at a reduced rate of 15%.
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39 The subsidiaries of the Group, which have obtained the Certificates of High/New Technology Enterprises, can enjoy preferential tax rate of 15% for current period, which including: the Company (No. GR202344004122), Xing Qun (No. GR202344002036), Zhong Yi (No. GR202344010147), Chen Li Ji (No. GR202344005874), Guangzhou Han Fang (No. GR202344010098), Qi Xing (No. GR202344004761), Jing Xiu Tang (No. GR202344007214), Pan Gao Shou (No. GR202344009572), Wang Lao Ji (No. GR2023344003015), Guand Dong Han Chao (No. GR202344003019), Tian Xin (No. GR202344004253), Guang Hua (No. GR202444002191), Ming Xing (No. GR202344008105), Guangyao General Institute (No.GR202444009410), Guangxi Ying Kang (No. GR202445000589), Guangzhou Pharmaceutial Information Technology Co., Ltd. (No. GR202344009159). Wei Yi Industrial Co., Ltd. (No.: GR202444001470), Guangyao Wanglaoji (Bijie) Industrial Co., Ltd. (No.: GR202452000044)d Gansu Guangyao Baiyunshan Chinese Medicine Technology Co., Ltd. (No.: GR202462000057). Hainan Guangyao Chen Fei Pharmaceutical Co., Ltd., Guangyao (Zhuhai Hengqin) pharmaceutical Import and Export Co., Ltd., WLJ Great Health and Guizhou Wanglaoji Cilinji Industry Development Co., Ltd. enjoy tax incentives for encourage industries, and paid enterprise income tax at a reduced rate of 15% in 2026. In accordance with the Announcement on the Policy of Additional Deduction of Value- Added Tax for Advanced Manufacturing Enterprises (Announcement No. 43 of 2023 by the Ministry of Finance and the State Taxation Administration), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to deduct 5% of their current deductible input tax amount from their payable value-added tax amount. The Company, together with Zhongyi Pharmaceutical, Chenlijiji Pharmaceutical Factory, Guangzhou Hanfang, Jingxiutang Pharmaceutical, Tianxin Pharmaceutical, Pangaoshou Pharmaceutical, Guangxi Yingkang, Mingxing Pharmaceutical and Xing Qun, are entitled to the aforesaid value-added tax additional deduction policy. 5.1.7 Dividends According to the resolution of the 2025 annual general meeting held on 29 May 2026, the Company shall pay cash dividends to all shareholders at RMB0.45 per share (tax included), which is RMB731,605,927.05 in total, based on the outstanding shares of 1,625,790,949 shares at the year ended of 2025. 5.2 No Changes in accounting policies compared to the most recent annual report. 5.3 No change in accounting estimates and accounting methods compared to the previous annual report. 5.4 No correction for significant accounting errors in the current reporting period.
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40 5.5 Explanation on change in consolidation scope compared to the previous annual report. 5.5.1 Other reasons for changes in the scope of consolidation include Compared with the previous period, there is 4 additional consolidated entity in the current period due to other reasons. The reasons are as follows: (1) In January 2026, the Company established Guangzhou Pharmaceutical Digital Intelligence Technology Co., Ltd., with a registered capital of RMB30 million. The Company’s subscribed capital contribution accounts for 60% of the registered capital. (2) In March 2026, Caizhilin Pharmaceutical, a subsidiary controlled by the Company, established Guangzhou Caizhilin Suihong Traditional Chinese Medicine Clinic Co., Ltd., with a registered capital of RMB800,000, of which Caizhilin Pharmaceutical’s subscribed capital contribution accounts for 100% of the registered capital. (3) In March 2026, the Company’s controlling subsidiary Pharmaceutical Company acquired Zhejiang Pharmaceutical Industry Co., Ltd. The target company has a registered capital of RMB136 million, of which Pharmaceutical Company subscribed for a 100% equity stake. (4) In April 2026, Caizhilin Pharmaceutical, a subsidiary controlled by the Company, established Guangzhou Caizhilin Shennongxuan Traditional Chinese Medicine Clinic Co., Ltd., with a registered capital of RMB1 million, of which Caizhilin Pharmaceutical’s subscribed capital contribution accounts for 100% of the registered capital. 5.6 There is no explanation from the Board on non-standard audit report issued by the auditors for the current reporting period. The Board of Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited Guangzhou, the PRC, 21 August 2026 As at the date of this summary, the Board comprises, (i) Mr. Chen Jiehui, Mr. Yuan Cheng, Mr. Cheng Hongjin, Mr. Tang Heping, Ms. Liu Lan and Mr. Liu Hong as executive Directors, (ii) Mr. Huang Jiyuan as non-executive Director, and (iii) Mr. Wong Lung Tak Patrick, Ms. Sun Baoqing, Mr. Wu Xiangneng and Mr. Yang Yinbao as independent non-executive Directors.